Daily Archives: June 15, 2013


Exclusive: Deutsche Bank ‘horribly undercapitalized’ – U.S. regulator

Exclusive: Deutsche Bank ‘horribly undercapitalized’ – U.S. regulator

(Reuters) – A top U.S. banking regulator called Deutsche Bank’s capital levels “horrible” and said it is the worst on a list of global banks based on one measurement of leverage ratios.

“It’s horrible, I mean they’re horribly undercapitalized,” said Federal Deposit Insurance Corp Vice Chairman Thomas Hoenig in an interview. “They have no margin of error.”

Hoenig, who is second-in-command at the regulator, said global capital rules, known as the Basel III accord, allow lenders to appear well-capitalized when they are not. That is because the rules allow the banks to use complicated measurements of how risky their loans are to determine the capital they must hold, he said.

Seven BofA employees’ declaration in regards to the banks’ HAMP contract litigation

Statements by the Bank of America Employees
Statement by Bank of America Contractor

Help expose the tax cheaters

Help expose the tax cheaters

The International Consortium of Investigative Journalistspublishes today a database that, for the first time in history, will help begin to strip away this secrecy across 10 offshore jurisdictions.

The Offshore Leaks Database allows users to search through more than 100,000 secret companies, trusts and funds created in offshore locales such as the British Virgin Islands, Cayman Islands, Cook Islands and Singapore. The Offshore Leaks web app, developed by La Nación newspaper in Costa Rica for ICIJ, displays graphic visualizations of offshore entities and the networks around them, including, when possible, the company’s true owners.


CBS Atlanta News Special: Foreclosure Fraud in Georgia – servicer fake “modifications” ,foreclose and take insurance

Published on Sep 5, 2012
TV special describing foreclosure fraud in Georgia and how Georgia officials fail to take prosecutorial action despite a new law that makes foreclosure fraud a felony, punishable by fines and jail time.


BofA Gave Bonuses to Foreclose on Clients, Lawsuit Claims

BofA Gave Bonuses to Foreclose on Clients, Lawsuit Claims

Bank of America has helped the most homeowners under HAMP and is committed to assisting customers at risk of foreclosure, Rick Simon, a company spokesman, said today in an e-mail.

“At best, these attorneys are painting a false picture of the bank’s practices and the dedication of our employees,” Simon said. “While we will address the declarations in more depth when we file our opposition to the plaintiffs’ motion next month, suffice it to say that each of the declarations is rife with factual inaccuracies.”

The lender unsuccessfully tried to dismiss the complaint in 2011. U.S. District Judge Rya Zobel ruled that the case could proceed while dismissing some claims. Zobel is scheduled to consider the class-certification request at an Aug. 1 hearing.

Loan collectors who put at least 10 customers into foreclosure, including those who were in trial modifications, were given a $500 bonus, said Gordon, who worked at Bank of America for more than four years. Other rewards included gift cards for retailers including Target (TGT) and Bed, Bath and Beyond, she said.

‘Falsify Information’

Another former employee, Theresa Terrelonge, said loan officers were given restaurant gift cards and $25 cash awards for denying loan applications. The incentives moved workers to improperly reject applicants, Terrelonge said in a May 15 statement.

“I witnessed employees and managers change and falsify information in the systems of record, and remove documents from homeowners’ files to make the account appear ineligible for a loan modification,” said Terrelonge, a loan servicing representative. This allowed managers to meet quotas for closed cases, she said.

Bank of America instructed employees to delay applications and mislead customers “as part of a deliberate practice of stringing homeowners along,” lawyers said in a June 7 filing.



DOCKET NUMBER: 1:10-MD-02193

14.0 AMENDED COMPLAINT (Consolidating Cases) against BAC Home …
69.0 AMENDED COMPLAINT (Second Amended Consolidated Class Acti…
84.0 AMENDED COMPLAINT Third against Defendant Bank of America…
113.0 MOTION for Leave to File an Amended Complaint and Request…

Bank of America lied to distressed homeowners, former employees say

Bank of America lied to distressed homeowners, former employees say

Bank of America systematically worked to deny thousands of loan modifications with specific delay tactics that included lying to homeowners and repeatedly requesting documents employees knew were already in the system, according to statements added last week to a multi-district lawsuit filed in federal court.

The suit, which is seeking class-action status and includes a Boynton Beach homeowner, claims the lender purposefully hindered modifications requested by borrowers through the federal Home Affordable Modification Program.

According to former employees of the Charlotte, North Carolina-based bank, loan modification agents handled up to 400 cases at a time and eligible borrowers were pushed into foreclosure during periodic “blitzes” where any file with documents 50 days old or older was automatically denied.

“This included files in which the homeowner had provided all required financial documents and fully complied with terms of the trial period,” said William E. Wilson, a former Bank of America underwriter who worked for the company between June 2010 and August 2012. “The delay and rejection programs within Bank of America were methodically carried out.”

Wilson, whose statement was taken June 5 and filed with the court two days later along with affidavits from six other former employees, says he was fired by Bank of America after complaining the denials were unfair.